The pair closed in NY Wednesday at $1.2938 after rate had seen intraday recovery highs of $1.2978, easing itself back to $1.2919 in NY before edging higher into the close. The recovery extended into Asia to $1.2957, dipped back to $1.2934 as it tracked Aussie dollar’s reaction to the release of weaker than expected headline CAPEX data, bouncing back in line as details of the release were seen positive, to a high of $1.2966 ahead of the European open. End month models are tending to show dollar sell signals which some are putting behind Wednesday’s recovery, others noted strong demand through the day from an Asian asset manager. Offers remain in place toward $1.2980 ($1.2978 Weds high, $1.2979 55-dma), a break here to expose area of recent highs at $1.2993-98, with stronger sell interest seen into $1.3000. Support remains back at $1.2935/30 ahead of $1.2920. Euro area confidence data at 0900GMT provides the domestic highlight this morning, followed this afternoon by the US Q1 GDP second read.
